World Bank recommends establishment of a 'National Council of Ministers' in Pakistan

 

World Bank recommends establishment of a 'National Council of Ministers' in Pakistan

The World Bank has recommended the establishment of a 'National Council of Ministers' in Pakistan, comprising both federal and provincial representatives, to address significant development and governance challenges resulting from incomplete devolution and institutional weaknesses. The purpose of this council is to address the shortcomings in federal and provincial institutions, policies, and accountability systems by ensuring simultaneous and coordinated strengthening.

The World Bank has expressed skepticism about the potential of technocratic government interventions to bring about significant changes in Pakistan's institutional environment in the short term. However, it acknowledges that the current context, characterized by deteriorating economic conditions, demographic shifts, and the influence of social media, may present opportunities for positive change.

 

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One of the key issues identified by the World Bank is the incomplete implementation of devolution initiated through the 18th Amendment, which has led to overlaps in service delivery, increased fiscal costs, and blurred lines of accountability. This has weakened accountability for revenue collection and complicated tax administration. The bank also noted that performance reviews are infrequent, promotions are often based on seniority and informal networks rather than qualifications, and incentives prioritize adherence to rules over operational performance.

To address these challenges, the World Bank has urged the government to take immediate measures to improve coordination among different levels of government and between federal and provincial authorities. Specifically, it recommends the following:

The Council of Common Interests (CCI) and the National Economic Council (NEC) should play a critical role in supporting national policy coordination and coherence, given that decisions made by the Economic Coordination Committee or the federal cabinet are no longer binding on the provinces.

A National Council of Ministers, composed of federal and provincial ministers operating under the auspices of the CCI, should formulate and monitor the implementation of key national policies in areas such as education, health, food security, agriculture, water and sanitation, and transport.

The newly elected government should work on building consensus around technical implementation arrangements for a decentralized system, including expenditure cuts, tax and revenue assignments, and the transfer of functions and tax instruments.

 

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An appropriate constitutional body (likely the CCI) should develop an implementation plan based on a mutually agreed vision, achieved through a consultative process with broad provisions.

Federal-provincial fiscal coordination should be improved, including efforts to harmonize tax policy and administration and ensure the effective implementation of a national medium-term fiscal framework, in line with new federal and provincial fiscal responsibility legislation.

Measures should be prioritized to strengthen institutions, enhance accountability, and counteract elite capture, all while building the administrative capacity of the government to deliver crucial reforms and investments.

The World Bank also called for improvements in processes for public sector appointments, performance management, and tenure. It recommended introducing a Performance Management System (PMS) for public servants, strengthening the security of tenure, and safeguarding chief executive appointments from political interference in key public sector agencies.

In-service training of government officers should be strengthened, and recruitment should focus on relevant skills and expertise rather than solely performance on public service exams.

The bank emphasized the importance of digitalization to increase efficiency and reduce corruption opportunities, noting that Pakistan's existing infrastructure, including smart mobile phones, electronic databases, computerized land records, and a robust IT industry, provides a conducive environment for such initiatives.

Overall, the World Bank's recommendations aim to address governance and development challenges in Pakistan by enhancing coordination, accountability, and the capacity of government institutions.

Source: Dawn

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